London Economic talks. Inter-departmental Committee  met
yesterday afternoon and resulted practically in deadlock.
Professor Melville and myself in a minority strongly advocating
line of policy indicated by you in personal telegrams to Prime
Minister and myself.  McFarlane and I were then deputed to
place position before Treasurer.
He strongly agreed your point of view about postponement but felt
we could not press for shelving if United Kingdom and other
Dominions intended to proceed. In the meantime, Canada has
As result of talk with Treasurer, telegram was drafted, which he
is sending to you in his name.  I felt bound to show him the
personal telegrams, setting out your views, as I am sure the Prime
Minister would have closely consulted him about them had he been